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Enterprise Risk Management and Enterprise Decision Management

Interesting article by Steve Minksy in ebizq today - The Dos and Don’ts of Enterprise Risk Management.  Enterprise Risk Management is a key objective in many organizations that adopt EDM and not just because there is only a one letter difference in the abbreviations.

Steve founded RulesPower, a company acquired by Fair Isaac last year with an eponymous product in the process of being integrated into Blaze Advisor. Steve offers some great advice on "how to" and outlines some nice criteria for ERM Technology. Clearly the combination of business rules (for compliance, process control) and analytics (for risk prediction) is key here.

I like his last comment the best though:

The greatest rewards come from Enterprise Risk Management when used to affect the way all our decisions are made. The key is in knowing what to do, and what not do to. Bolstered by the right technology, smart companies really can turn risk into gold.

This is the essence of EDM applied to risk - build/buy systems that focus on decisions and how they are made. Get ALL the operational decisions that impact your business made right - precisely and consistently.

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